I have both Vegas 10 and 11 installed on my PC, but I've noticed that in Vegas 10 I can move video events smoothly on the timeline, while in Vegas 11 the events move in increments of one frame (I think), and can't be moved smoothly to exactly where I want them. I've tried disabling snapping but it doesn't change anything. Is there setting in tools or preferences I need to change?

Try Alt+F8 or Options/Quantize to Frames.

Thank you!

Please do note that with video you *WANT* it to snap to the frames.

With audio it's OK to go between frames.